Synopsys (NASDAQ:SNPS) is set to give its latest quarterly earnings report on Tuesday, 2025-09-09. Here's what investors need to know before the announcement.
Analysts estimate that Synopsys will report an earnings per share (EPS) of $3.35.
Investors in Synopsys are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Earnings History Snapshot
The company's EPS beat by $0.27 in the last quarter, leading to a 1.61% drop in the share price on the following day.
Here's a look at Synopsys's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 3.40 | 2.84 | 3.3 | 3.28 |
| EPS Actual | 3.67 | 3.03 | 3.4 | 3.43 |
| Price Change % | -2.0% | -3.0% | -12.0% | -3.0% |
Stock Performance
Shares of Synopsys were trading at $598.14 as of September 05. Over the last 52-week period, shares are up 30.22%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Insights Shared by Analysts on Synopsys
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Synopsys.
Analysts have given Synopsys a total of 9 ratings, with the consensus rating being Buy. The average one-year price target is $647.78, indicating a potential 8.3% upside.
Understanding Analyst Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Cadence Design Systems, Strategy and Adobe, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Cadence Design Systems, with an average 1-year price target of $371.53, suggesting a potential 37.89% downside.
- Analysts currently favor an Buy trajectory for Strategy, with an average 1-year price target of $644.57, suggesting a potential 7.76% upside.
- Analysts currently favor an Outperform trajectory for Adobe, with an average 1-year price target of $457.5, suggesting a potential 23.51% downside.
Peer Metrics Summary
In the peer analysis summary, key metrics for Cadence Design Systems, Strategy and Adobe are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Synopsys | Buy | 10.28% | $1.29B | 3.59% |
| Cadence Design Systems | Outperform | 20.25% | $1.09B | 3.27% |
| Strategy | Buy | 2.73% | $78.74M | 25.02% |
| Adobe | Outperform | 10.62% | $5.24B | 13.78% |
Key Takeaway:
Synopsys ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.
Unveiling the Story Behind Synopsys
Synopsys is a provider of electronic design automation software and intellectual property products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Synopsys' comprehensive portfolio is benefiting from a convergence of semiconductor companies moving up the stack of technologies toward systems-like companies, and systems companies moving down-stack toward in-house chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.
Breaking Down Synopsys's Financial Performance
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Positive Revenue Trend: Examining Synopsys's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.28% as of 30 April, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Synopsys's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 21.53%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Synopsys's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.59%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Synopsys's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.88%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Synopsys's debt-to-equity ratio stands notably higher than the industry average, reaching 1.08. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for Synopsys visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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